GST cut benefits real, to last beyond Diwali: FM

Consumption to rise 10% this fiscal: Vaishnaw

- FE BUREAU

THE NEXT-GENERATION Goods and Service Tax (GST) reforms unveiled late September have brought about the desired price reductions for essential items and goods consumed by the middle class in the ongoing festive season, laying the foundation for sustained consumption and investment growth, Finance Minister Nirmala Sitharaman said on Saturday.

“GST rate reductions have increased purchases. We are convinced that on every such item (where the tax has been reduced), benefits are being passed on by companies,” Sitharaman said. In case of some products like air conditioners, television sets and toys, businesses have even passed on benefits higher than weighted-average GST cuts to consumers, the minister said.

“It (GST reform) is something that is going to benefit every consumer on a day-to-day basis and even for those rare once-in-a-couple-of-years purchases, like AC or better digital television and so on,” Sitharaman said.

"SO, IT (CONSUMPTION increase) will sustain. The consumption story will continue." Electronics, I&B and Railways minister Ashwini Vaishnaw said the GST cuts, along with other factors, would lead to over 10% growth in consumption (private final consumption expenditure or PFCE in nominal terms) in FY26. The PFCE was